HI6006 Competitive Strategy: Analysis of Amazon's Kindle Fire Strategy

This report analyzes Amazon's business strategy for the Kindle Fire, focusing on its competitive positioning in the tablet market. Initially relying on a cost strategy, the report suggests a shift towards a differentiation strategy to enhance product uniqueness and customer loyalty. It emphasizes the importance of improving product quality, speed, interface, and battery life to compete effectively with rivals like Apple and Samsung. The report concludes that by focusing on differentiation, Amazon can gain a competitive advantage, attract customers, and boost sales for the Kindle Fire. Desklib provides access to similar case studies and business strategy assignments for students.

Running head: BUSINESS STRATEGY
BUSINESS STRATEGY
Name of the Student
Name of the University
Author Note

1BUSINESS STRATEGY
Business strategy is highly important in an organisation as it provides an organisation
with a direction as to what needs to be done in order to achieve the goals of an organisation. It is
defined as competitive actions and moves that organisations use to attract their customers and
strengthen the performance of the company to achieve their desired goals (Cortimiglia, Ghezzi
and Frank 2016).
From the case study, Kindle Fire: Amazon’s heated battle for the tablet market, it can be
seen that how Amazon had been fighting in order to sustain in the tablet market and dominate the
tablet market. The business strategy of Amazon can be seen here where he focuses on enhancing
the customer experience through their products however put the main emphasis on their cost
strategy. Amazon has developed their business and has become a huge success in the market
because of the cost strategy they have incorporated in their business. They believe in providing
good quality products at a cheaper rate to attract their target customers however, the intense
competition in the tablet had created several issues for the company.
The case study shows that Kindle was one of the most successful products of the
company however, Kindle Fire with added high quality features and a relatively low price in
comparison to the other tablets in the market. However, the company was receiving minor
complaints in terms of the speed of the tablet and other services that had been provided in the
tablet. Amazon in order to ensure that the Kindle Fire dominates the tablet market and becomes
one of the best tablets in the market then the company needs to shift their focus from the cost
strategy to differentiation strategy.
According to scholars, the differentiation strategy is to create a unique feature for the
product and services which will be the unique selling point (USP) of the product or service so

2BUSINESS STRATEGY
that it can compete in the market effectively (Semuel, Siagian and Octavia 2017). Widuri and
Sutanto (2019) state differentiation strategy helps the company in increasing their sales and most
customers want their hands on products and services that are unique and different in a positive
way in the market.
Amazon needs to incorporate this strategy in terms of manufacturing Kindle Fire in order
to enhance their services and also create a USP for the product. Kindle Fire, apart from focusing
on cost strategy should focus on providing high quality products to their customers which will
attract the customers and make them purchase this product. Kasiri et al (2017) opines the
differentiation strategy though expensive in the initial stage but it ensures customer loyalty
which helps in boosting the sales of the company. The Kindle Fire needs to be better than their
competitors who have been constantly making changes to their tablets like Apple and Samsung.
The Kindle Fire, needs to upgrade their quality and should sell their products at a higher range so
that they can retrieve the investment cost.
The buying behavior of the customers have made a shift where they want to pay for
products which is going to be beneficial for them and is going to last longer so that for the
customers it is a onetime investment (Weisstein, Choi and Andersen 2019). Amazon needs to
encash on this behavior of the customers and come up with strategies that will ensure in making
the product different and unique from the other existing tablets in the market.
 The Kindle Fire needs to be compact and light so that it can be easier for the people to
handle it and travel with it.

3BUSINESS STRATEGY
 Kindle Fire needs to ensure the speed and the interface of the tablet of the smooth and
fast for the convenience of the people.
 Kindle Fire can come with different colors that may help in appealing the customers.
 The tablet should have a good battery life in comparison to the other tablets in the market
giving it a different and unique feature
 Kindle Fire should come up with different pricing on the basis of added quality and
features.
Kindle Fire has become popular however the product does not generate heavy revenue for the
company, Amazon because of the stiff competition it gets from other companies like Apple,
Samsung, Sony and many more. It is important for Amazon in terms of their tablet to shift their
focus on incorporating the differentiation strategy so that it can gain a competitive advantage in
the market, attract customers and boost their sales.

4BUSINESS STRATEGY
Reference
Cortimiglia, M.N., Ghezzi, A. and Frank, A.G., 2016. Business model innovation and strategy
making nexus: evidence from a cross‐industry mixed‐methods study. R&D Management, 46(3),
pp.414-432.
Kasiri, L.A., Cheng, K.T.G., Sambasivan, M. and Sidin, S.M., 2017. Integration of
standardization and customization: Impact on service quality, customer satisfaction, and
loyalty. Journal of Retailing and Consumer Services, 35, pp.91-97.
Semuel, H., Siagian, H. and Octavia, S., 2017. The effect of leadership and innovation on
differentiation strategy and company performance. Procedia-Social and Behavioral
Sciences, 237, pp.1152-1159.
Weisstein, F.L., Choi, P. and Andersen, P., 2019. The role of external reference price in pay-
what-you-want pricing: An empirical investigation across product types. Journal of Retailing
and Consumer Services, 50, pp.170-178.
Widuri, R. and Sutanto, J.E., 2019, January. Differentiation Strategy and Market Competition as
Determinants of Earnings Management. In International Conference on Tourism, Economics,
Accounting, Management, and Social Science (TEAMS 2018). Atlantis Press.
www.feedough.com